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tv   Mad Money  CNBC  April 29, 2014 6:00pm-7:01pm EDT

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exxon mobile. i think it goes higher. >> i'm melissa lee. thanks again. "mad money" with jim cramer starts right now. my mission is simple. to make you money. i'm here to level the playing field for all investors. there is always a bull market somewhere, i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to crayamerica. it's my job to teach and coach, call me at 1-800-743-cnbc. or tweet me @jim cramer. is it a major court day or a minor court day? that's what i'm trying to discern during the periods of turmoil, underneath the
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averages. even when a benign day where the dow climbed 87 point, s&p advanced and the nasdaq jumped 0.72%, you know in the old days before the market turned against the high momentum growth stocks, today would have been a major day, led by the momentum stocks like amazon, netflix, yelp. all the other stocks that used to be so loved. i guess i should say overloved. but a collective revulsion toward momentum brought on by the endless insider selling -- sell sell sell sell and ipo glut, coupled with the sudden and unexpected decline in interest rates that freaked out traditional yield seekers has turned it into the minor cord. meaning that today was an oddity. because expensive stocks rally and the orchestra of all stocks doesn't play together very much anymore. we have to resume that it will
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be distinstively short lived when you look at the preponderance of the earnings reports. >> the house of pain. sell sell sell. >> so let's take advantage of our second back-to-back up day to talk about what can happen next. like to save these comments for up days so that people can take advantage of them. first, understand that we're totally in the grips of the 2000 analogy, meaning the year 2000. when many people believe that the overloved cohort is beginning to play over and twitter barely beat expectations. panera had the asian chicken salad, guided well below expectations. at least for the next quarter. and ebay is motivated by vicious competition from the now defrocked stock that was amazon. they need to raise guidance for sales and earnings.
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we didn't get those good cities from the three gutter balls. second, i think a huge number of traders and many investors do believe that in 2000, the nasdaq rolled over and then brought down the s&p 500. they say that because the charts of the two averages show it's true. look, we get this, the nasdaq plummeted from 504 -- to 8 to 1660 a year later. the s&p didn't peak until december. so you can say, well, it brought down the nasdaq, but wait a second. you have to break down the decline within the s&p. because it had much more to do with the decline in value of the large tech stocks that so dominated -- precome napted the s&p 500. like sysco which journeyed in market cap to $1448 billion and
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then back to $86 billion. do you know that intel and microsoft had a similar trajectory within the s&p where tech they were responsible for this decline. most of the other stocks that we like were responsible for picking it up. they were obliterated and by the preponderance nature of tech. and the tech moves dwarfed the rest of the market. the amazing runs we saw in the foods, in the beverages, the drug stocks, the non-tech growth stocks, the industrials, the oils and the utilities. yes, tech was so huge that it blighted the whole s&p, despite the big rallies and the other sectors i mentioned. so i'm not as frightened by the 2000 analogy as others. because the worst decline in nasdaq history did not in fact bring down the vast majority of the other stocks. those are the same stocks that are now in strong footing in 2014. so please don't read the exodus from momentum as an exodus from
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the entire market. that would be a false read. view it as a migration to cheaper companies. the last truly a god send in the low interest rate environment and hence, stocks like ibm and mcdonald's, up nicely in the last few weeks. and now that been able to breathe for day let's explore the real reasons for the downturn. a quiet day we can do this. you can make a judgment about whether you need to sell them in the strength or in the weakness we have had for so long. when i study the decline when sales force.com did the pirouette right after a picture perfect quarter, i recognized that many of the characteristics of the bad part of the 2000 era are indeed with us. i can't deny that. of course many are in the stocks because many big hedge fund managers because they needed so badly to beat their benchmark in the s&p 500. you know what that's the same rationale as the remarkable 1999
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lineup to the stop when dozens of tech stocks double and tri e tripled. in retrospect, they were only in it because, well, they were going higher. that was the reason. when they stopped go up, including the suddenly negative charts, those buyers turned sellers. >> sell sell sell. >> with a vengeance. like back then the companies that were leaders were throwing around the dollars especially the stocks, the market cap, like it was going out of style. they bought each other, they bought private companies and paid any price for any garbage because they knew the stocks were garbage. we don't have that level of foolish acquisitions yet. but we have seen a couple of doozies and i can tell you when companies are spending on other companies that don't have a lot of revenue or earnings that's regarded as a negative now. people don't like it.
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third, back then we had a virtual flood of me too companies coming to the ipo and they went after the customers in the internet space. they were armed to the teeth and they immediately set out to destroy each other. by the time that the year was over, only a handful of survivors, yahoo! up after hours because they own ali baba, and priceline, it was an annihilation caused by too many companies getting too much capital that's precisely what's happening right now and you see it added -- you see it at its worst in the software as a disservice base where everyone is gunning for each other. the niche players are slugging it out and orcal, microsoft and ibm, they have committed to cloud when they talk about their earnings now. thank you talk about cloud cloud cloud. they're like weather people. they have to do it, survival.
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these companies are going to bleed each other to the point where lots of the new byes can't make it. we're hearing that box and dropbox, residential renting booking company might be worth $10 billion. okay, i'll say it, that's nuts. it can't last. the competition going to be too rife. they'll bash each other, you don't won't to be there when that happens. i'm taking a calm day going over this stuff. finally, there was the selling. always the selling. the relentless drum beat of selling, selling, selling. by everyone. new companies, ipos, secondaries, at any price. i didn't matter. at any price. no price was too low. i studied that 2000 nasdaq crash endlessly. so if i saw the warning signs again i'd shout it out from the rooft rooftops. here is what i wrote about in "real money." i can tell when the frenzy's
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about to crash by measuring supply and demand. right near the absolute top it's -- although i have done that once in my life, march 15, 2000 t underwritings of which were fantastic began to fail. merchandise considered hot, meaning that it went to a premium almost immediately after it was launched begins to sag. deals opened up and slipped to or below the offerings. they began to pop up like mad as insiders couldn't sell previously because they were locked up on the initial public offerings dumped their shares. they don't stop, despite the hammering they do to stocks because the pieces of paper are incredibly overvalued. they want to get out. at the exact top of the dotcom bubble for example, every deal, every merchandise started failing or dropping below the level which it was priced. none of the deals was working. that was the signal to get out. supply had overwhelmed demand. and that's all she wrote.
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i think it's playing out like the description like the year 2000. the survivor, oh, there will be by plenty. under armour, it's extremely popular and growing world wilde, but the stock got ahead of itself. you know what? i think many of those who went public this year won't exist. many must be avoided like the plague. here's the bottom line. we have a breather today that allows us to gather or thoughts. this is similar to 2000 to ignore the parallels, but the industrials, old techs, drugs, retailers are buoyed by better earnings like 2000. they have a remarkable run like when tech got trashed. it was cause and effect. don't run from the market. when you get a chance like today walk from the minor cord to the major one in an orderly fashion. selling in the strintd not the weakness. like in 2000 with a small group
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of exceptions. i don't think you'll regret it. let's go to alan in florida. >> caller: what's up, jimmy? and recently fast tracked for the cancer drug, now i read on the street they may have something for autism. is it going higher? >> yes, i read the piece about autism. yesterday, the neurological association said that it should be used for multiple sclerosis. my doctor, was on cbs last night. saying there's no choice, the medical profession is going to adopt medical marijuana and gw pharma is the only one that passes the smell test. all right, sure we see the parallels between this market and in 2000 and you won't regret sticking with it. later, your search for a cheap flight may help you find your next investment. under armour is opening first store in manhattan.
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i'm getting an exclusive first look. and buffett may be the richest man in america. it all started at age 11. want to know what he bought? >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. [ man #1 ] we're now in the approach phase,
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sleep train's interest free for 3 event, ends sunday. ♪ sleep train ♪ ♪ your ticket to a better night's sleep ♪ sometimes a company can report a good quarter but still isn't good enough to satisfy the market. take spirit airlines simple save. the ultra low cost airline is one of the best run companies in the industry, an industry that's been on fire ever since the justice department allowed antitrust mergers. it has 56 planes but it has a business model that marks. showing the lowest rate, packing as many customers as possible into the given plane and paying extra for everything beyond the actual seat, including carry on
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luggage. they have been profitable for years and they plan to grow their business over the next few years. they reported this morning and even though spirit beat the estimates by a penny and reported an inline revenue number year over year, the stock got slammed anyway. falling $1.74. i think this is simply a case where it had run up a lot since the last quarter and people were hoping for a huge blowout. honestly if it sells at 15 times earning and that makes it cheap versus others in the market. they're giving you a 30% gain since we spoke with the ceo, so let's welcome him back to "mad money." >> great to be back with you, jim. >> all right, ben, now, this is a quarter where it looks like you did have some weather related issues that did knock out some of the earnings that you might have otherwise had and i know it wasn't brought up before, but what would the quarter have looked like without the lost days? >> well, you know, we haven't quantified exactly what the
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weather cost us, but we did cancel about four times as many flights for weather in the first quarter of this year than we did last year. so you know, we saved some costs by not flying the trips but since every flight we fly we try to make money on, it certainly here -- it hurt us on the earnings side a little bit. we still had a good quarter and i think the closeness of our beat to the street estimates was more a factor -- more a function of the fact that the analyst industry is getting better and better about modeling the company. >> right. i was concerned about that. because one of the things that -- they hadn't caught on. they have caught on to your model. 40% is nonticket. they seem to understand that you have a certain way of doing things and now suddenly they're talking about frontier coming in. is this -- i have been waiting for someone to bring up competition. hasn't happened. is the tone of what the analysts who have turned on a lot of the stocks are saying to you make you concerned about the stock itself? >> no, i mean our stock, we
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believe, you know, has under -- upside because we're growing at 15 to 20% a year. we have told the street that we believe that we can grow at that rate while maintaining our currently very high margins. or you know sort of our target margin in the 15% pretax rate. and, you know, when you have higher earnings and a high growth rate, that's a good formula for stock appreciation over time. that's what we expect should happen. as long as we stick to our -- and in terms of other competition -- go ahead, i'm sorry. >> i was going to say, in terms of sticking to your knitting, you're adding a huge number of new routes. do those people in kansas city, chicago o'hare, do they know the ways of spirit airlines or do they need to be educated to your ways because you run your
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airline differently? >> yes. all of -- all of off customers need to learn how to fly more than spirit. some customers love us because they use the fare structure and a la carte options they use that as a way to save money. others learn it as they go. we have some initiatives in place that will launch in a couple of weeks to help them understand it even better. we think that's really powerful and really positive. we think kansas city is going to love us, just the way other cities love it. the total price on spirit is averaging 40% less than on other carriers. and it's hard not to love that if you want to save money on air travel. >> do people understand that there's a bit of a bargain though? when you were here, we were joking about customer service. you made it clear, customer service means getting from one place to the other as inexpensively as another. you have to teach them somewhere in kansas city? >> we'll try to teach them well. we think a lot will understand it. those who fly spirit airlines we think are the smartest in the sky because they have figured out how to save money and put their travel spend -- air travel
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spend in proportion of the total trip they're taking. they spend less getting where they're going and more money doing what they want to do when they get there. that's really a smart buy. that's why we love our customers and the ones who love spirit understand its. >> we know the industry is flush. when it's flush, it starts going head to head. buying a whole group of planes. we have been a believer since 2013 that that paradigm is not going to repeat itself. this was a bountiful quarter for the airlines. am i too sanguine, am i too ebullient about this group because it's such a winner? >> it's such a winner and you have targeted, jim. you told your listeners this for a while now. but back in 2008 the industry lost about $10 billion. in 2000 -- in the last couple of years, 2012 and 2013 we have had fuel prices that have averaged as high as that but the industry
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is making money. the industry has restructured itself to be able to make money at higher energy prices. that means fewer competitors, that means fewer flights on each route. that means generally higher fares for customers but it also means a more stable industry economically and it also creates enormous growth opportunity for a company like spirit. we can make money at lower prices for consumers we can come into markets that have lost some service with a much lower price option. now we give people a little less. we don't give them as much leg room or a free drink on board, we don't give them wi-fi or anything, but they pay a much lower fare and they're happy to have that option. so it's a really good time for the industry and particularly good for spirit because fares are generally high. we like breaking that paradigm a bit. >> well, ben, you have made money for shareholders. a lot of other companies are spending way too much. not bringing it to the bottom line. yours not one of them. thank you so much.
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president and ceo of spirit air. >> always great to be with you jim. thanks. understand, guys, every stock that's been up a lot is selling off. okay, kind of the way it is. but remember we're looking for companies that make a lot of money. and sell off. not the ones that make a lot of sales. spirit makes a lot of money. save, we'll be just fine. stay with cramer. next -- >> he connects art to technology. >> she does it better than anyone else. >> he's changed the way that people shop forever. >> it was like triple lightning in the bottle. >> the 25 greatest innovators, disrupters and game changers of the last century. the first 25 rebels, icons and leaders.
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hey, we all now under armour by now. we couldn't resist sitting down with kevin plank at the brand new store in soho, new york. it's a victim of the sudden turn against expensive names and the high-priced earnings ratio, but plank's a fighter. you need to be thinking of buying stocks when they're going down, not when they're flying high. take a look. kevin, we are a long way from university of maryland in baltimore. we're in soho. is this the new image of under armour? >> 18 years to get to this point, but you don't walk into new york city in year one. we earned it. we have been through this education. this college course. this master's program of saying are you ready for new york city? we're opening our brand new store. >> you are a bit of a david against goliath, which is nike.
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is this a statement nike, we have got our own town? >> yeah. well, if that's always -- i would say it's our own world we're working on here. if we started at any point, we were the david, we were much smaller. look at us versus any of the competition. you know, in the past they were 25, 20, 15 times our size. this year they're roughly ten times our size. next year they'll be eight times our size. we like our trajectory. we like where we're headed. i think we have the opportunity to be the number one brand in the world. >> now wait a second. david, okay, you have to -- to go uf against nike. i know you're a competitor. but you're underestimating the competition. that's not like you. >> well, i would never do that. but what we would say, this not a zero sum game. one person doesn't have to lose for another one to win. there's lots of room for competitors. that doesn't make us like anyone anymore. frankly, the way that under armour is aligned if you look around the store, you see the direction that the company is
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going in, this is not a one trick pony. there's a lot of dimensions from digital and connected fitness, from what we're doing in the women's space. if attitude that footwear is presenting for us. we're a multidimensional zone. >> david beat goliath with technology. can you leapfrog over nike and talking about map my fitness which is the most on fire part of your business right now. >> one smooth stone, right? i think we have a lot of those stones that could be cast and more importantly, it's opening a new opportunity. what we want, i think all the brands are typically aligned with creating more athletes. getting more people physical and active. and we are seeing that as a issue around the world where obesity and dientd -- diabetes things that are happening. we coined a phrase, we believe that athletes want more information. think of a world today where you know more about your car than do about your own body.
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i know how much gas and tire pressure, yet when you go to see the doctor every 12 or 18 months he pulls out a manila folder. he asks you -- questions to you like how do you feel? going on the subjective versus where's the data? how long have i slept, how many steps have i taken, what is my heart rate like? predictive analytics in the way we can tie science into the subjective of how do we feel, it's the most important asset we have. >> look, there's talk that maybe wearables aren't giving out information, maybe there's a bit of a backlash here. your competitor seems to be pulling back a little. what kind of technology are you employing? why will yours be superior? >> look at the acquisition of map my fitness, $150 million of cash and people said what are you doing? everyone was what's on your next wearable or hardware? hardware is capital intensive and there's a new launch coming out next month. fill in the gap. there's new launch coming out in the fall, it could be coming
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from anywhere. what we made the bet on we believe in the community. map my fitness, 20 million active registered users. last week we announced the 24th million consumer signing up online. so we love the community, we love the voice, so we'll have one of the 30 million people by the end of the year. that's the size of canada. >> you understand pro sports, you understand women's sports and collegiate sport, men's sports. there are times when we have a measurement in my business and in the measurement is the stock. and as of late, in this quarter, you are getting beat. is this a game of four quarters? is this an overtime game? what's -- under armour stock and why should someone say, you know what, i want to hold on despite the fact that you have a high priced earnings multiple and the fact that the stock is under pressure? >> under armour is 8 1/2 years public now. this is not some company -- when we went public in 2005, that this year we'll be closing in on
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$3 billion. we announced our 16th consecutive quarter of 20-plus percent growth. our second quarter of 35 plus percent growth. we're delivering on everything. we continue to see that type of hyper accelerated growth for the year. when we think of the opportunity for under armour this is not -- the things you can control and the things you can't control. i can control my team and my brand and i can control my growth. we love all of those factors, we love the direction we're headed. what you'll see around us is what makes it come to life which is unbelievable products. i love our company. i think that we're an incredible opportunity, i think this is a $10 billion brand currently doing just under $3 billion in revenues. so how many companies can think of that kind of outlook? >> to get it there, the seams line, people have turned on companies that do sales, like amazon up. on the conference call, you have said that you may have to spend in upmarketing in order to win. people rebel against that because they say wait a second, i want companies that conserve
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cash and are putting in a clear road map without spending too much. are you in the spend too much to win cohort? >> not at all. we are consistent. our investor day last june, we laid out doubling our business by 2014. and we crossed $2 billion for the last time last year. we talked about the operating line, consistent with $480 billion of the $4 billion so we are 11% operating line company and saying we think there's improvement and leverage there. but we're a company going for every dollar invested. getting back 36% more this quarter. last year on a full year basis, our outlook is still in the 25% growth range. so you don't need to just spend in order to get growth. there's some companies that are organically growing up. we're up 79% on the international business aileen. with golf section, and when you look at our footwear business, again, you know, going back international, world is a big place. the united states representing 5% of the world's population and 90% of under armour sales today, we have been in this mode for a
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very long time. we're confident that our brand translates and confident that we have the right team in place. but this takes time. but the good news is our growth store, it's not coming from one particular place. our apparel business is up over 30% again. we have had 18 consecutive quarters up over 20%. i don't know, i'm looking for the chinks, i'm not seeing it as i look at the company and the brand. we feel strong where we're going. >> you had the olympics. you have notre dame, very big win. i like s.e.c. football. i like pac-10 football, i don't see under armour. how will you crack into the nike domination that we watch every saturday? >> you saw the auburn teaguers give florida state everything they could handle. if you watched steve spurrier win in the state of south carolina, including the number one draft pick in jadeveon clowney this year, the university of south carolina as well. so we have some teams out there,
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our recent announcement with notre dame we'll take assets as they come. but the assets are much more global assets. thing like coca-cola in chile. won the premiere division down in chile. making investments and our goal is using our growth drivers to help us fuel the global ambition as a company. so we'll drive that down in a big way. make these spends in front of the revenues on an international basis. >> that was kevin plank, ceo and chairman of under armour. i have a chance to walk around the store with kevin after the interview. we covered a lot more ground. it should not be missed. so go to madmoney.cnbc.com. more "mad money" after this, including number six on this list. list. i take prilosec otc each morning for my frequent heartburn.
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when the global economy starts picking up speed, i think that's happening right now you want to get behind some industrials because it can cause the earnings of the companies to explode upwards and that's the mother milk of higher stock prices. we like profits here. that brings me to the favorite
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industrial, that has aerospace components and it another a stock that i own in my charitable trust. it takes off when the economy improves especially when we get the rebound in the nonsfril production. this morning, it was a mixed quarter. it fell $2.35, or 3.15%. company earned $1 per share. inline revenues that rose year over year. however, eaton gave down side guidance for next quarter, because of the restructuring effort in the hydraulic business. it's up a couple points, but let's not forget it's quadrupled since he reassured us in october 2008 that things would be fine. could the pull back be a terrific entry? let's find out and check in with sandy cutler and find out more about the company and the company's prospect. welcome back to the show.
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>> thank you very much. >> sandy, you gave a little bit of a mixed picture of an outlook. i'm wondering how much of the mixed picture stems from the fact that there's one division, electrical systems that doesn't seem to be up to your snuff. yet the other industry seemed to be pretty strong. >> yeah, jim, we think we had a really very good first quarter. our organic growth was up 4.5% as you noted. it was reduced by a point, to a net of 3.50. but that 4.5% organic growth the strongest we have seen in two years. so we think it stands up very well from what you have seen from the other companies and our operating earnings are up 21%. a very strong quarter. and we were hit by about three cents by what i would call the weather splattered quarter. some higher costs we had from weather. a very good quarter. i think the issue you correctly put your finger on is that consensus had been for 1.28 or 1.29 in the second quarter. we had never given guidance for
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the second quarter. our guidance is 1.10 and embedded in that is an 8 cent restructuring charge. it was $4.77, we absorbed that 8 cents of additional restructuring cost in the 4.70 and by some people's account we raised our guidance. but i think people are trying to work the way through the fact that the street's overall consensus for the year was $4.81. 11 cents above our guidance. and we reiterated our 4.70 as i mentioned. i think that's the process you see in the short term adjusting. we are firm in our view we will see markets increase by the 3% we talked about this year. the april tone is noticeably better than what we saw in the winter this past year a particularly here in the united states. >> i think that's important to talk about because you did not blame the weather. you were not one of the companies that said, listen, we lost this many days or that many days but when you talk about
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electrical services, i have to imagine that the construction that might have been able to be done wasn't able to be done. so literal i what you had some orders that weren't filled until april. >> that's very much what we saw. you saw in the electrical products segment which is the products that go through distribution, our orders were up 6%. very healthy and reflects a number of the director conversions that brought us cooper and eaton together. and in the services area, orders were down 6%. and in the u.s., they were down a little bit more than that. really reflecting what we saw is not many large projects placed this winter. in fact, it was a different winter than most years we see. we are now seeing a number of the projects starting to be placed here in april. we think there was dislocation on the order placement it really did affect order placement. that's why in the call i commented today, we are encouraged by the tone of what we see, not only on the flow products that go through distribution, but on the larger
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projects that are being placed. >> okay, let me ask you, i think there's some confusion. david faber and i talk about this on the morning show. eaton is a cleveland, ohio based company. but slugged, dublin, ireland. what's the advantage of being able to have a release that's basically from dublin when we know you're in cleveland? >> we are headquartered in ireland. and that -- that change took place when we acquired cooper industries that i think you know was an ireland based company. and so we've got a number of operating centers around the world. but our headquarters is in dublin, ireland. >> well, are you able to repatriate cash more easily because you're headquartered in dublin? because i see cash building, i keep thinking that this could be an opportunity for eaton to maybe make another acquisition in europe because of the way your tax system is. europe is coming back. i think maybe next time i see you it will be with something
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bigger in europe because you're based in ireland. >> you saw we had an almost 17% increase in dividend in keeping with our feeling that the dividends is an important part of the shareholder return. we also committed that when we acquired cooper we would repay $2.1 billion of debt and the last traun. of that will occur in 2016. so in the interim, we have said that we'll continue to pay back the $2.1 billion of debt. we'll fully integrate the cooper integration which was a 3 1/2 year process. finishing off in '16. so that we would not be in the acquisition market in any material way at the end of 2015 or early 2016. now part of that, jim, as we talked is not simply the financial issue. also the management capacity issue. because we're quite busy having added 30,000 my years to -- employees to the company. we want to realize all the synergies in the acquisition.
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>> thank you for clarifying for what was mystifying to the analysts about how that you affirm guidance. that was not clear and i appreciate you coming on the show. thank you, sandy. okay, that was sandy cutler, big industrial. didn't do the number that people liked so you have to do the work and check it out before you pull the trigger. the trigger. next, cnbc celebrates with the ultimate list. the 25 greatest innovators, disrupters and game changers of the last quarter century. the first 25, rebels, icons and leaders, next on cnbc.
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"lightning round" is sponsored by td ameritrade. >> it is time. it is time for the lightning round. you say the name of the stock. i don't know the calls or the name of the stock ahead of time. i tell you whether to buy or sell. when you hear this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? time for the "lightning round." adeer in -- >> caller: thank you for taking my call. midd. >> this is what i call an investors business daily stock, they make restaurant equipment, basically. i think this is the kind of company that's got way too momentum oriented. i'm not going to bless it. if i want in the industry, i'll be in manitaw.
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john in new jersey. >> caller: booyah, jim. >> booyah. >> caller: my stock i'm looking at is ttna -- ttat. >> understand this is the safier play on apple. apple has to do something to get the stock to 20. i'll be clear, that's why i call it a great spec. tim in virginia. >> caller: booyah, jim, this is tim. >> how are you? >> caller: good. sysco foods. >> sysco foods is one of my favorites. why, because it's merging with u.s. food to create a power house. the quarter was weak because of the food service to restaurants, i don't expect the blowout quarter for this sysco. let's go to michael in the illini. >> caller: hey, i get to see you every morning at 8:00 in the living room. now i get to speak to you. what do you think of pfizer? >> i think pfizer is doing a lot of right things. i don't like they're doing the
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motivation for astrazeneca just for the earnings but pfizer is a great company to earn. it has control of its own destiny. i like that. that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade. de. who found a magic seashell. it told him what was happening on the trading floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a...shell. get live squawks right in your trading platform with think or swim from td ameritrade.
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in celebration of our 25th anniversary, cnbc created a list of the 25 most influential and
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transformative people in business the last 25 years. all day we have been revealing the list and how they stacked up. here is number six, a business magnate, an investor, here's the oracle of omaha. >> the guy is the most well-known investing name in america, period. >> that name of course is warren buffett. the oracle of omaha. whoed a age 83 continues to attract tens of thousands of people to the annual stockholders meeting for his company. berkshire hathaway. it's called the woodstock of capitalism. >> he's like a rock star there. >> he's like your grandpa, but
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he's a billionaire. that makes him really pretty special ♪ ♪ the weather, we'll all stick together ♪ >> his friends and followers run the gamut. from the average joe -- >> hi, how you doing? >> -- to billionaire bill gates. and improbably actress susan lucci. >> good morning. >> he's terribly successful, we all know that. but he's also very good at communicating to the public. how they might achieve their open own dreams. >> buffett began achieving his at age 11. that's when the math prodigy made his first investment in city service, coming out cash positive and developing a straightforward investing strategy. >> he's not a buy high, sell higher guy. that's a momentum player h.'s a buy low, hold and then get the
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full value man. >> it's as much about him, the person, the investor, as it is about what he's done in american history of business. taking berkshire hathaway and turning it from a textile company, a failing one, into an insurance and industrial giant. >> a giant with annual revenues approaching $200 billion and a market value of more than $300 billion. that's made warren buffett the third wealthiest person in the world according to forbes. his net worth, about $65 billion. want to know how he does it? he'll tell you. >> if i buy a farm, i don't get a quote on it every day. if i buy an apartment i don't get a quote on it every day. if i buy a stock, i want it to be a stock that i'm happy owning. >> he's done well in everything.
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that's not the half of his impact. >> he's done more than anybody else. to make americans understand the stock market and you'll have cycles. you should look at them as businesses and underlying businesses not as a gambling parlor. >> as much of the money making talent that sets him apart. >> i love how candid he is and he speaks plainly so people can understand him. >> lucci has worked with buffett. not in investing but in acting. buffett guest starred as himself in 1992 and again in 2008. when lucci's character erica kane found herself behind bars on abc's long running soap opera "all my children." >> oh, warren, i can't tell how you how grateful i am. he didn't bail her out. >> why wouldn't she think that? throwing life lines to companies
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in trouble is his m.o. salomon brothers in '87 and goldman sachs and general electric. >> our company has been through some economic hard times in the last 25 years. warren buffett was there to help people bail themselves out. >> some of the investments worked out better than others, but win or lose, he stayed true to his midwestern principles, including his beliefs about inheritance and philanthropy. >> he thinks that that that kind of serious wealth is dangerous for his children. he doesn't want them to have that much money and he wants to deploy it to some good use after his death. >> in 2006, he announced that he would give away most of his fortune, the bulk of it to friend bill gates' foundation. >> he's also that ware breed of billionaire who is saying essentially tax me more. the wealthy need to pay more of their fair share. >> the power of that is that people don't see warren buffett as a greed head or as one of the wall street guys who's got the girls and the fast cars and everything else. >> he's lived in the same house he bought in the 1950s in omaha.
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he still lives there today. >> he just has an american car that he drives around. he buys clothes off the rack. he's a simple, folksy guy. >> a straight talking don't take yourself too seriously kind of guy who made his mark making money and influencing a generation of investors but whose legacy will be how the billions he gives away will touch the millions he never knew. >> so he's a great combination of having a global view. wanting to give back. also staying grounded. >> now, five people managed to top buffett. on cnbc's list of influential and transformative business leaders in the past 25 years. you can find out what it takes to top the oracle of omaha, next on cnbc. and stick with cramer. ramer. [ male announcer ] the wright brothers started in a garage. mattel started in a garage.
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disney started in a garage. amazon started in a garage. ♪ the ramones started in a garage. my point? some of the most innovative things in the world come out of american garages. introducing the lighter, faster cadillac cts. 2014 motor trend car of the year. ain't garages great? ♪ "first day of my life" by bright eyes ♪
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you're not just looking for a house. you're looking for a place for your life to happen.
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lost in the shuffle today was i did not talk about 3-d systems. remember i told you that was way
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overowned. 3-d delivered the inline number and twitter did the inline number. didn't get it. there's always a bull market somewhere. i promise to find it for you. right here on "mad money." i'm jim cramer. see you tomorrow. welcome to cnbc's rebels, icons and leaders. i'm tyler mathisen. tonight, you'll meet the 25 individuals who have left the greatest marks on global business, finance, the markets, and consumer culture over the past quarter century. so let's get started. at number five, the ultimate disrupter.

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